Copper prices ended the week up on Friday, despite China’s extended covid restrictions and concerns growing about a potential recession. The price was also supported by slow growth in American jobs in August.
US employers added 315,000 new jobs in August, far fewer than 500,000 jobs in July. That number, however, is slightly higher than economists were expecting.
Copper for delivery in December rose 1.4% from Thursday’s settlement price, touching $3.45 per pound ($7,590 per tonne).
Some districts of China’s southern tech hub Shenzhen extended covid curbs on Friday, but stopped short of a full lockdown, while the megacity of Chengdu went into lockdown late on Thursday.
Naeem Aslam, a chief market analyst at Ava Trade, said the curbs in China would have an impact on both supply and demand.
“If smelters are shut down you will have less supply, but it also means less consumption, so it’s a double-edged sword,” he said.
Market participants are increasingly concerned that Europe’s energy crisis will impact demand, according to ANZ research.